The Glorious First of June

1 June 2011

The date has a romantic association for the British.  It commemorates a naval battle in 1794, the first by organised  fleets of similarly armed warships.  Although the Royal Navy was the apparent victor, the French grain convoy it sought to interdict, completed evaded capture.

It is a bit like the struggle against corruption.  There are enthusiastic noises,  much trumpeting of action, but the target is elusive and continues to fight another day!  There is a continuing need for refined tactics to increase effectiveness.

Yesterday an additional weapon was added to the New South Wales armory.  It has a new body to encourage whistleblowers.  ICAC (the Independent Commission Against Corruption) announced that a group of senior agency officials will support whistleblowers who often feel so discouraged or intimidated that they do not pass information to those who can take effective action.

“ICAC recognises the key role whistleblowers play in exposing public sector corruption and is keen to ensure that they are afforded the guidance and support they need.”  ICAC experience is that reporting misconduct, particularly in one’s own agency, takes great courage.  Many have insufficient confidence in protection policies  to “blow the whistle”.

The evaluation published last week of OECD members’ commitment to the Anti Bribery Convention made frequent references to the effectiveness of whistleblower protection. New Zealand has been repeatedly criticised for the perceived inadequacy of the Protected Disclosures Act, largely restricted in application to public sector agencies and the less than complete confidentiality afforded to whistleblowers.

The reality is that only a small percentage of informed complainants seek the formal protections of  whistleblowing regimes. Where data is gathered,  jurisdictions report that a minority of complaints flow through hotline processes that promise anonymity. Most employees share information with senior colleagues in whom they have trust. Facilities like Crimebusters have a profile but are not a preferred resource.

A willingness to establish confidentiality frameworks provides some assurance that agencies take integrity complaints seriously.  Where there is trust there is more likely to be a preparedness to risk the fallout that is all too often associated with whistleblowing.  The obligation of New Zealand State sector agencies to have a protected disclosure policy and to publish it (and periodically republish it) was emphasised when the State Services Commission reported the results of the 2010 Integrity and Conduct survey results last August.  It also recommended eight actions that agencies take to strengthen integrity, based on the survey findings.

All guns must be brought to bear on unethical conduct if we are to maintain public trust in the State services and confidence in government. 

www.icac.nsw.gov.au/media-centre/media-releases/article/3871

www.ssc.govt.nz/sites/all/files/integrityandconduct-survey2010-findings-summary.pdf

Rough patch for Australian police

31 May 2011

Australian police forces have been getting some bad press this month.

The Office of Police Integrity has been very critical of the process used by Victorian Police to collate crime statistics.  The Commissioner is embarrassed about data showing that each year up to 15,000 crimes in the State have been wrongly identified as  cleared or solved.  A system overhaul is inevitable.  Only slow progress is being made with the establishment of IBAC, the independent anti corruption body for all parts of the Victorian public sector which the Government had hoped to have operational by now.

In New South Wales the Police Integrity Commission released a 54 page report on Friday with recommendations for search warrant processes to overcome repeated allegations of police corruption.  More rigorous video recording of searches, note taking and other corruption prevention controls are thought necessary, although in 98 cases scrutinised, the Commission found good compliance with existing safeguards.

And in Queensland a review has found the Police complaints and misconduct system is dysfunctional and in need of a drastic overhaul.  The Premier said a review “starkly and bluntly describes a system much in need of reform” and came with 57 recommendations for change.  New, fair and transparent arrangements are needed to restore public confidence instead of the current “administratively burdensome, overly legalistic and adversarial process that is dishonoured by chronic delays, inconsistent and disproportionate outcomes”.

None of which can do much for the morale of police officers committed to the well being of their communities!

Police forces commonly are subject to oversight by separate integrity agencies from those that scrutinise other public services.  Increasingly however the move is to bring Police under the same ethics umbrella.  This is the model being developed for Victoria’s new IBAC.  In New Zealand Police are subject to the Cabinet Manual requirement that …”Employees in the state sector must act with a spirit of service to the community and meet high standards of integrity and conduct in everything they do. In particular, employees must be fair, impartial, responsible, and trustworthy”, although misconduct investigations fall within the mandate of the Independent Police Conduct Authority, not the State Services Commissioner.

www.abc.net.au/news/stories/2011/05/26/3227463.htm?section=justin

http://www.pic.nsw.gov.au/files/News/OstaraFinal.pdf

http://news.smh.com.au/breaking-news-national/bligh-vows-reform-of-qld-police-probes-20110524-1f1mp.html

www.cabinetmanual.cabinetoffice.govt.nz/3.50

http://www.ipca.govt.nz/

Win some, lose….

30 May 2011 

Two recent surveys show New Zealand in an interesting juxtaposition.  To mark its 50th anniversary last week, the OECD published a Better Life measure of its member countries – a “happiness index”.  New Zealand was 4th overall on eleven indicators.  Australians are the happiest and residents in Canada and Sweden are also happier than we are. Those in the US and Norway rate similarly to us.

The survey meets a demand for an index that does more than assess economies by their GDP. The OECD says production is  still important but it is not sufficient to measure wellbeing. Apparently Robert Kennedy once said that GDP measured everything apart from the things that made life worthwhile.

But Iceland (whose citizens are the 11th happiest in the OECD)  has tipped New Zealand from the top spot on the Global Peace Index of 152 countries. New Zealand replaced Iceland as the most peaceful place in 2009, and retained that spot last year. In the latest survey published last week,  New Zealand scored less well than last year and largely indistinguishable on the 23 indicators from Denmark and Japan, while the assessment of Iceland improved. Denmark is 6th on the happiness index and the Japaneses are 19th. Australia, Canada and Sweden, ahead of us on the happiness index are respectively 18th, 8th and 13th on the Global Peace Index.

Among the reasons we lose marks on happiness is a poor work -life balance and our level of peacefulness is diminished by numbers being imprisoned.

The Australian compilers  of the peace index point out that the world has become less peaceful for the third successive year, with terrorist attacks in 29 countries and violent demonstrations in many others. However there are fewer conflicts between countries and spending on armaments has reduced. The cost of violence during the year is assessed at US$8.12 trillion. (The cost of corruption by comparison is estimated at US$3 trillion annually.)

www.visionofhumanity.org/wp-content/uploads/2011/05/2011-GPI-Results-Report-Final.pdf

www.oecdbetterlifeindex.org/

www.economist.com/blogs/dailychart/2011/05/well-being_and_wealth

www.guardian.co.uk/business/2011/may/24/oecd-measures-happiness

Unruly law among Russian officials

29 May 2011

In what reads much like a lecture to first year law students,  Russia’s President Medvedev spoke last week of the  damaging effect on the Russian economy of corruption and the lack of a consistent rule of law.  He called on senior officials and judges to ensure property rights were protected and the law implemented.

“Even the best laws will not work, will remain simple declarations, if judicial institutions don’t work, or if the institutional procedures are too flabby or excessive….Shortcomings in implementing laws, a lack of respect for courts and corruption are not just the perceptions of society but they are basically macro-economic factors which restrain the growth of national prosperity,” he said.

However  Russia’s anti bribery groups claim that corruption has become more common during Medvedev’s presidency.

Transparency International rated Russia 154th out of 178 nations in its corruption perceptions index last year, ranking below India, China and Brazil. The CPI of course is a measure of public sector fraud. Disregard for integrity appears to be shared with the private sector as the President acknowledged the astonishing extent of losses to corruption.

President Medvedev said he had made progress in creating what he called a “lawful state” but admitted there was still a vast amount of work to be done to help businesses.  Good government requires a focus on integrity from all its employees.

The largely corruption-free record of New Zealand State services has had a knock over the last few weeks with the first ever corruption conviction of a prison officer and a media report that another is to be sentenced on corruption charges shortly.

Employee offending in the New Zealand private sector is worse than in government. The personal verification website shows most cases of theft as a servant were in the private sector although officials were over represented among people convicted of using a fraudulent cv.  Where fraud is suspected, the expectation of the Auditor General is that the matter is referred to the Police ( or the Serious Fraud Office ). Agencies should not act as if they have a discretion.

Russian agencies appear unconstrained.  In 2010 the equivalent of more than $US $35 billion was stolen in State contracts alone.

www.reuters.com/article/2011/05/20/russia-medvedev-idUSLDE74J0SM20110520

www.tvnz.co.nz/national-news/prison-guard-arrested-trying-leave-nz-4147051www.cbsnews.com/stories/2011/03/28/ap/europe/main20047916.shtml

www.verify.co.nz/

NZ gets “Could do better” report

26 May 2011

The Transparency International 2011 progress report on enforcement of the OECD Anti Bribery convention was published this week. As in previous years, New Zealand is placed in the bottom group of the 37 convention members who were assessed. (Iceland was absent from class.) This bottom group comprises countries that take little or no action to enforce provisions proscribing the bribery of foreign officials.

Overall the report shows no improvement in the commitment to promote compliance with the convention, indicating that only seven countries have active enforcement. The findings largely replicate the OECD Annual Report published in April. New Zealand falls below the standards of the Scandinavian countries with which we are often compared.

TI expresses “serious concern” that New Zealand has not aligned aspects of law to conform to the convention – primarily the inability to prosecute companies for bribery and for not enacting an offence of failing prevent bribery. As in previous reports, TI criticises New Zealand for neither extending the Protected Disclosures Act to cover the private sector, nor assuring whistleblowers of full confidentiality.

The TI report was published on the eve of a conference in Paris, “Joining Forces against Corruption – G20 Business and Government”. This is part of the OECD 50th Anniversary. Russia of course is part of the G8/G20. Ironically the OECD has today invited Russia to become a party to the Anti Bribery convention despite its reputation for decreasing ability to counter domestic corruption. It slipped from 146th in 2009 to 154th in 2010 on the Corruption Perceptions Index. President Medvedev claimed yesterday that 20% of Russia’s defence spending was stolen by “corrupt officials, dishonest generals and crooked contractors”.

http://transparency.org/news_room/latest_news/press_releases/2011/2011_05_24_oecd_progress_report

http://online.wsj.com/article/SB10001424052748704570704576274652530867430.html

http://uk.reuters.com/article/2011/05/24/uk-russia-defence-idUKTRE74N22120110524

Briefing the Minister not promoting the agency

25 May 2011

State servants, Political Parties, and Elections : Guidance for the 2011 Election Period published last week by the State Services Commission includes Appendix 5 – “Guidance on the preparation of briefings for incoming Ministers”.  This prescribes the process each departmental chief executive must follow to ensure that Ministers, as soon as they take up office, are briefed on their portfolios.

Although the practice since the 1990s has been for Ministers to release briefings to the media, the guidance makes it clear that this should not be assumed.  After several election cycles up to 2005 agencies packaged their briefings for Ministers as a public relations publication.  This is no longer appropriate.  Briefings should be structured around Ministers’ needs and kept confidential to the Minister.  Where material is requested under the Official Information Act, Ministers, not agencies, should determine what is released. Nevertheless, the openness expectations of the OIA must shape the way that Ministers respond.

The incoming  New South Wales Government has adopted a more rigorous approach than appears intended by the wording of the New Zealand guidance. There, the Premier has directed that briefings for new Ministers are not to be released.  His approach is that briefings have the character of cabinet papers and must be restricted in the same way.  Media have commented that this runs counter to the Government Information (Public Access) Act.

Information prepared by New South Wales agencies in anticipation of an election  is collated into “blue books” which are provided to Ministers on appointment.  New Zealand had an equivalent “black book’’ process until 20 years ago when the terminology changed, and the information was compiled in a “BIM” – a briefing for the incoming Minister.

www.ssc.govt.nz/node/8390

www.smh.com.au/nsw/foi-fans-flattened-by-ofarrell-edict-20110523-1f0xn.html

OAG measures of a trusted public sector

24 May 2011

The Office of the Auditor General statement of intent for 2012 published last week includes an interesting diagram comprised of a range of good governance measures for the New Zealand State services and the effectiveness of agencies in supporting the outcome of a trusted public sector.

Comparative ratings over a number of years are shown for

  • Transparency International Corruption Perceptions Index
  • Worldwide Governance Indicators
  • Kiwis Count respondents reporting confidence in public services
  • Public entities financial statements fairly representing actual results
  • The Integrity and Conduct survey measure of State servants reporting any observed misconduct
  • Kiwis Counts respondents reporting most recent public service experience was good value for tax dollars spent
  • Kiwis Count respondents reporting satisfaction with public services

The measures indicate why New Zealand maintains a favourable reputation on the international stage as one of the exemplars of good government. There are a number of measures that could  have been added to the diagram that would support that status, including the Ease of Doing Business Survey and the recent Sustainable Governance Indicators.

http://oag.govt.nz/2011/statement-of-intent/part1.htm

http://www.doingbusiness.org/reports/global-reports/doing-business-2011/

http://www.sgi-network.org/pdf/SGI11_NewZealand.pdf

“Spirit of public service” at work in Chicago

23 May 2011

Last Monday, Rahm Emanuel was sworn in as Chicago’s 55th Mayor, having resigned as the White House chief of staff to contest the February election. During the campaign he spoke of bringing to Chicago a focus on transparency akin to that championed by President Obama in federal government. He indicated that he would impose lobbying controls and bring in measures to change the culture of corruption and cronyism.

On his first day in office he made executive orders prohibiting

  • appointees from lobbying officials within two years of leaving the administration;
  • employees from lobbying the department where they work;
  • appointees from lobbying their fellow board members;
  • employees from making gifts or political contributions to the mayor or their superiors;
  • lobbyists from making gifts to the mayor.

Mayor Emanuel said that limiting the influence of lobbyists and protecting employees against pressure from their superiors will help restore Chicagoans’ confidence in their City government.

Just as President Obama’s first executive act was the symbolic reversal of an order on sealing presidential records to make Federal government more open, Emanuel said that his first official act as Mayor was to send “…a clear message that all operations of City government must be guided by a spirit of public service.”

Ironically he didn’t deliver on a promise to ensure that everyone involved in planning matters, including elected members, would be required to disclose any potential conflicts of interest.

From a New Zealand perspective it seems extraordinary that US City governments don’t already have clear prescriptions on declaring and registering interests, gifts and associations which could be seen to influence their decision making. But conversely, we are not sensitised to the integrity threats posed by lobbying and  “revolving doors” which motivated Mayor Emanuel’s first official acts.

http://blogs.suntimes.com/sweet/2011/05/mayor_emanuel_day_one_ethics_e.html

http://blogs.wttw.com/moreonthestory/2011/05/18/mayor-emanuel-presides-over-first-city-council-meeting/

Tone at the top needed for public confidence

20 May 2011

The Westminster model was championed in many former British territories as the best way to manage good government.  It has strengths that many seek to emulate. Support for the democratic process, respect of the rule of law, and a commitment to professionalism are inherent characteristics.  But it has its weaknesses. Transparency International (UK) this week has reported on the undermining influences of revolving doors, of influential politicians marketing their connections to the corporate sector.  TI states that urgent reform is needed if conflicts of interest are not to further diminish public confidence in government.

A TV documentary last year included secret recordings of senior British politicians who believed they were being offered business opportunities.  Their comments strongly suggested that the system was being corrupted. One former Minister, offering to sell his influence said “I’m a bit like a sort of cab for hire”.

There are few items disclosed in register of New Zealand MPs’ interests published this week which would suggest that lobbyists and others are “buying” favours.  But the situation in Canada is more concerning. MPs there are required to declare any travel given to them valued more than $500.  In the last 4 years 172 MPs declared 336 trips costing $1.9 million. The funding comes from foreign governments, business and advocacy groups. One MP was gifted nearly $72,000 worth of travel.   Democracy Watch has described the Canadian regime as  a “blatantly unethical system of allowing lobby groups and interest groups to buy influence…”

These practices influence public perception and may contribute to poor opinions of politicians and political parties.  In a UK survey political parties were ranked as the most corrupt sector in public life, with Parliament ranking third. The revolving door was ranked second among potentially corrupt activities: awarding a peerage in return for a large political party donation was ranked worst.  These views are reflected in Britain being placed 20th on the Transparency International’s Corruption Perceptions Index – below countries like Qatar without a long politically liberal history.

Last week in two Australian states, controls on lobbying were tightened.  The Victorian Budget speech indicated that legislation would be introduced to give effect to the Coalition’s manifesto proposal for a lobbying code, a register of lobbyists and a prohibition on success fees relating to public tenders and projects. In New South Wales the new Government has already strengthened lobbying regulation and legislated against success fees.

Britain, Canada, Australia and New Zealand as members of the OECD are expected to give effect to the OECD Principles for Integrity and Transparency in Lobbying  that provide a structure to minimise the sort of incidents reported by TI (UK).  European states, which form the majority in the OECD, feature in the 2011 Ernst and Young European Fraud Survey published yesterday. Two thirds of respondents across 25 European countries agreed that bribery and corruption were widespread. Complacency about corruption is suggested by nearly half  those surveyed, who indicated that businesses do not provide fraud training. Over 40 percent felt that bribery and corruption had worsened over the last two years .

Agencies in New Zealand must be mindful of these trends. It is for that reason that the State Services Commission Statement of Intent published following yesterday’s Budget indicates that its Integrity and Conduct programme is a critical underpinning of all its work across the State sector.

http://foi-privacy.blogspot.com/2011/05/victorias-planned-ban-on-lobbyist.html

www.ctv.ca/CTVNews/Canada/20110517/mps-free-trips-110517/

www.parliament.nz/en-NZ/MPP/MPs/FinInterests/4/9/4/00CLOOCMPPFinInterests2011notes1-Register-of-Pecuniary-and-Other-Specified.htm

www.ey.com/GL/en/Newsroom/News-releases/European-companies-complacent-about-rising-fraud-and-corruption-risks

www.ssc.govt.nz/sites/all/files/SSC-Statement-of-Intent-2011-2014_1.pdf

New look State Services Commission website

19 May 2011

State Services Commission dropped its “In Development” blog in November last year.  The plan was to include the blog in a refreshed SSC website.  The new site is up tonight, with the comprehensive resources of SSC wrapped as a fresh, appealing and responsive package.

Integrity Talking Points, was first published on the Public Sector Intranet, and then became part of “In Development”. Those entries now form part of the refreshed SSC site.

It may be time for Integrity Talking Points in its current guise to morph back into its SSC roots!

http://www.ssc.govt.nz/